New York Stocks Rise on Easing Concerns Over Trump’s Grip on the Fed...Intense Heatwave [Morning Briefing]

◆ New York Stock Market Closes Higher as Concerns Over Trump’s Fed Takeover Ease

The three major New York stock indices closed higher on the 26th (local time). Former President Donald Trump attempted to dismiss Lisa Cook, a member of the US central bank (Federal Reserve), but Cook responded with legal action, alleviating concerns about the Fed’s independence. As a result, market sentiment shifted its focus to NVIDIA’s earnings release, scheduled after the market close. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 45,418.07, up 135.60 points (0.30%) from the previous session. The S&P 500 increased by 26.62 points (0.41%) to close at 6,465.95, while the tech-heavy NASDAQ Composite Index finished up 94.98 points (0.44%) at 21,544.27.

◆ International Oil Prices Plunge on Trump’s Comment: “Oil Will Soon Fall Below $60”

International oil prices dropped sharply after President Trump predicted that the price per barrel would fall below $60. On the New York Mercantile Exchange, the price of West Texas Intermediate (WTI) crude for October delivery fell $1.55 (2.39%) from the previous session, closing at $63.25 per barrel. At a cabinet meeting at the White House, Trump said, “Oil prices have dropped close to $60 a barrel and will soon break below that.” He did not specify any particular measures to lower prices.

◆ Hanwha Philly Shipyard Naming Ceremony...President Lee: “MASGA Miracle to Become a Reality”

President Lee Jae-myung, currently visiting the United States, visited Hanwha Philly Shipyard in Philadelphia on the 26th (local time). Immediately after a summit with former President Donald Trump the previous day, he visited the shipyard, underscoring his commitment to expanding Korea-US shipbuilding cooperation. The visit is seen as highly symbolic, as the MASGA (Make American Shipbuilding Great Again) project played a key role in recent Korea-US tariff negotiations. In his congratulatory speech, President Lee said, “Through the MASGA project, Korea and the US shipbuilding industries will achieve a win-win breakthrough,” and “Just as Korean entrepreneurs and workers created the “K-Shipbuilding” miracle from barren land, let’s join forces to make the MASGA miracle a reality.”

◆ Will SKT Face the Largest Fine Ever? Personal Data Protection Commission Reviewing Sanctions Today

The Personal Information Protection Commission will hold its plenary session today at 2 p.m. at the Government Complex Seoul, to review the sanctions proposal against SK Telecom following a massive customer Universal Subscriber Identity Module (USIM) data leak. Final measures, including a potential fine, may be decided today, attracting investor attention. The amount and severity of the fine will be finalized after discussion among commissioners. However, if further documentation is needed, the conclusion may be postponed. The telecommunications industry is watching closely, as the Commission previously stated its intention to deal “strictly according to the law and principles” regarding this hacking incident, raising speculation that the largest fine in history may be imposed. By law, fines can be up to 3% of revenue, excluding revenue unrelated to the leak. Given SK Telecom’s wireless communications sales last year (₩12.77 trillion), the fine could reach mid-₩300 billion at maximum.

◆ Immediate Investigation or Fine for Safety Violations at Workplaces From October, No Prior Warning

The government, having declared a “war on industrial accidents,” will, from as early as October, begin investigations or impose fines on workplaces violating safety duties without granting a separate corrective opportunity. Currently, if a violation is detected, authorities issue a corrective order for 10 days, and investigation or fines are imposed only if the order is not complied with. This often leads employers to neglect safety duties, thinking compliance with the order is sufficient. According to related ministries, the Ministry of Employment and Labor plans that, starting in October, if any safety violations are found in industrial safety inspections, they will immediately begin investigations or impose penalties without prior corrective orders. If a crime is identified, the case will be sent to the prosecution.

◆ Former Prime Minister Han Deok-su’s Detention Hearing for “Aiding Rebellion” Today…Pivotal Moment in Martial Law Probe

A decision on whether to detain former Prime Minister Han Deok-su, accused of aiding former President Yoon Seok-yeol’s act of rebellion, could come as soon as today. Judge Jeong Jae-wook at the Seoul Central District Court will conduct a pre-arrest interrogation (warrant hearing) for Han from 1:30 p.m. today. On the 24th, special prosecutor Jo Eun-seok’s team—investigating the December 3 martial law case related to rebellion and treason—requested an arrest warrant for Han. Charges include aiding the ringleader of rebellion, perjury, falsification of official documents, damage to public records, violation of the Presidential Records Management Act, and use of false official documents.

◆ North Korea Criticizes President Lee’s “Denuclearization” Remarks During US Visit: “Utterly Futile Delusion”

North Korea criticized President Lee Jae-myung’s statement during his US visit that South Korea and the US would cooperate for peace and denuclearization on the Korean Peninsula, calling it “an utterly futile delusion.” The Korean Central News Agency (KCNA) published a commentary titled “The Identity of the Hypocrite Suffering From Denuclearization Delusion Has Been Revealed,” declaring, “Our position never changes: we will never relinquish nuclear weapons, our nation's pride and entity.” The commentary further argued, “Korea, the only country in the world to have surrendered all sovereign power to the United States—a political pauper—still entertains hope for denuclearization without understanding the nature of our nuclear issue. This is an utterly futile delusion.”

◆ Highs of Up to 35°C as Heatwave Rages...Rain or Showers in the South

On Wednesday the 27th, heatwave warnings remain in effect for Jeollanam-do Region, Gyeongsang Region, and Jeju Island, and the weather will be hot. Daytime highs are forecast to reach 28–35°C. The apparent maximum temperature will remain around 33°C for now, indicating a very hot outlook. In the afternoon and evening, there will be rain in the northeastern mountains and northern coastal areas of Gyeongsangbuk-do, and showers in northern Chungcheongbuk-do, inland central Gyeongsangnam-do, and Jeju Island. Expected rainfall: around 5mm in eastern Gangwon; 5–10mm in northeastern Gyeongsangbuk-do mountains and northern east coast; 5–20mm in northern Gangwon mountains, northern Chungcheongbuk-do, central inland Gyeongsangnam-do; and 5–40mm in Jeju Island.

Oh Jung-min Hankyung.com Reporter blooming@hankyung.com